Kaneland CUSD 302 adopts 2024'25 budget with $4.2 million deficit reduction plan

Kaneland Community Unit School District 302's board voted unanimously to adopt its 2024'25 budget Tuesday after a public hearing and board discussion, approving an operating budget of $78,900,000 and a total district budget of $93,100,000.

Dr. Bogan, district chief financial officer, told the board the district's tentative operating deficit rose from an earlier projection of about $3.9 million to an expected $4.2 million in the proposed adopted budget. He said changes include higher approved staffing (additional FTEs), lower state evidence'based funding after the district moved from tier 3 to tier 4 and reduced CPPRT estimates. "At the time of tentative budget, the operating expenditures exceeded operating revenues by approximately $3,900,000.0," he said, adding that the updated expected operating deficit is $4,200,000.

The district projects an operating fund balance near $10,000,000 at year end, which Dr. Bogan described as roughly 46 days of cash on hand. He told the board the district must submit a three'year deficit reduction plan with the budget and said staff will present ongoing recommendations throughout the year to reduce the gap. "We will work very diligently over this year, to try and squeeze that gap," he said.

Public commenters raised transparency questions about how capital projects are presented in the budget documents. One resident asked why capital projects often appear coded under operations and maintenance on the public documents and requested a supplemental, itemized report so the public can track spending on projects such as the Ignite Academy, the track and boiler replacements. The chair closed the public hearing before board discussion.

Board members pressed staff on mitigation steps. Dr. Bogan said the district plans to limit new capital projects in the coming year as part of the strategy, and noted the district previously used one'time federal ESSER funding for limited, nonrecurring expenses; roughly $194,000 of ESSER funds remain budgeted for this year. He also described historical budget swings and said the district's practice in prior years included intentionally lowering fund balance to spend more on student needs.

Board member (speaker 13) moved to approve the budget with the deficit reduction plan; Dr. Bogan seconded. The roll call vote showed seven ayes and no nays; the motion carried 7'00.

The board directed staff to return with real'time recommendations and updates during the year as decisions are made that affect expenditures. The district must reach a balanced condition within the three'year window established in the submitted deficit reduction plan.